Starting 1 January 2019, Replacement Foreign Workers Compensation Scheme (FWCS) to SOCSO Employment Injury Scheme. SOCSO will take over the compensation for foreign workers according to the provision under the Employees’ Social Security Act 1969 (Act 4) covering the Employment Injury Scheme only.

OBJECTIVE

The purpose of this Circular is to inform all employers regarding the registration procedure, submission of contribution records, payment of contribution and processing of benefit claims for foreign workers with effect from 1 January 2019.

BACKGROUND

1) From April 1993, accident compensation for foreign workers came under the Workmen’s Compensation Act 1952 (Act 273) which was enforced by the Department of Labour.

2) With effect from 1 January 2019, SOCSO will take over the compensation for foreign workers according to the provision under the Employees’ Social Security Act 1969 (Act 4) covering the Employment Injury Scheme only.

EFFECTIVE DATE OF IMPLEMENTATION

1) All foreign workers with valid insurance coverage under the Foreign Workers Compensation Scheme (FWCS), the Department of Labour Peninsular Malaysia (JTKSM), Sabah and Sarawak will continue to be covered under the FWCS until the expiry date in 2019.

2) The coverage of SOCSO’s Employment Injury Scheme will only take effect after the expiry of FWCS coverage.

3) If the maturity date of FWCS extends beyond 2019, the Employment Injury Scheme will automatically apply to all employers who employ foreign workers starting from 1 January 2020.

4) For new foreign workers working in Malaysia beginning on the 1 January 2019, employers must directly register them with SOCSO under the Employment Injury Scheme.

APPLICATION

1) The registration procedures, submission of contribution records, payment of contribution and processing of benefit claims for foreign workers and their dependents are similar to the existing process for Malaysian citizens and permanent resident workers under Act 4. However, the following steps should be taken as follows:

a) Foreign Workers Registration

i. Employers must register their foreign workers via ASSIST portal or complete the Foreign Worker Registration Form as in Attachment A and submit it to the nearest SOCSO office.

ii. Foreign workers are eligible to be registered with SOCSO if they possess valid working permits or equivalent documents issued by the Immigration Department of Malaysia.

iii. Employers must submit supporting documents such as a photocopy of the front page of the passport containing employee details, valid working permit or entry permit or equivalent documents for SOCSO’s use.

iv. All foreign workers must register to obtain the Foreign Worker Social Security No. (12-digit KSPA No.), which is compulsory for the submission of employee contribution record.

v. The 12-digit KSPA NO. must be referred to when dealing with SOCSO on all matters related to foreign workers despite any subsequent changes to the worker’s passport details, valid working permit or equivalent document in the future.

b) Submission of Foreign Worker Contribution

i. Employers must make contribution payment based on the Second Category for the Employment Injury Scheme under Act 4, which is for the employer’s share only as in Attachment B.

ii. All foreign worker contribution payments must be made online through the ASSIST Portal or internet banking by using KSPA No.

c) Claims

i. All foreign workers benefit claims must submit a complete Foreign Worker Claim Notification Form as in Attachment C, together with supporting documents, and not using the existing Form 34.

ii. Foreign workers are not eligible to claim for education loan benefit, vocational rehabilitation, dialysis treatment that is not under the Employment Injury Scheme, and Return to Work programme.

iii. Foreign workers who die in Malaysia due to employment injury and are buried in their country of origin, are eligible for RM6,500 in Funeral Benefit.

iv. Other than the situation above, Funeral Benefit under the Employment Injury Scheme will be RM2,000 and is paid to eligible dependents. If there are no dependents, the amount of Funeral Benefit will be based on the amount stated in the funeral receipt, or whichever is lower.

QUERIES

If there are any enquiries regarding this Circular, please contact SOCSO Customer Service Centre, Headquarters (HQ) at 1300 22 8000.

Employers can also visit Socso official website, http://www.perkeso.gov.my or go to the nearest SOCSO office for more information.

SOCIAL SECURITY ORGANISATION

MENARA PERKESO

281, JALAN AMPANG

50538 KUALA LUMPUR

1300 22 8000

Employers still Compulsory need to purchase insurance scheme as below

Foreign Worker Insurance Scheme (FWIG)

Why do I need FWIG?

Mandatory cover for your foreign worker

Taking good care of your workers will ensure the smooth running and success of your business operations. Foreign Worker Insurance Scheme, will take care of the needs of your foreign workmen while protecting your business from disruptions in the event of illnesses or accidents.

Foreign Worker Insurance Guarantee (FWIG)

Foreign Worker Insurance Guarantee is a guarantee required by Immigration Department under Regulation 21 of the Immigration Regulations from Employers as a security deposit for the employment of foreign workmen in various sectors.

In the event that any of the foreign workman(men) is/are to be repatriated to their home country, this insurance serves as a guarantee to the Director General of Immigration Department up to the maximum aggregate sum of the guarantee value.

The Insurance Guarantee offered under this scheme does not include foreign maids.

Why do I need FWHSS (SKHPPA)?

Mandatory cover for your valuable asset

Taking good care of your workers will ensure the smooth running and success of your business operations. Foreign Worker Insurance Scheme, will take care of the needs of your foreign workmen while protecting your business from disruptions in the event of illnesses or accidents.

Foreign Worker Hospitalisation & Surgical Scheme (FWHSS) SKHPPA

In view of increasing Hospital and Surgical charges, this Scheme is specially designed to reduce the financial burden of the Employers of foreign workers in the event of hospital admission of their foreign workers due to accident or illness.

Foreign Worker PA Benefits During ON and OFF Duty with 24 hours Coverage

Employers available option to purchase a supplementary Personal Accident (Foreign Worker PA) cover for foreign workers has been developed to provide 24 hours protection.

Permanent disablement: Up to RM23,000 (working hours) or RM23,000 (off working hours)

Temporary loss of income due to temporary disablement

Hospitalisation & medical expenses: Up to RM750

Repatriation due to death or permanent disablement: RM4,800

Foreign Workers Hospitalization and Surgical (FWHS or SKHPPA)

The Foreign Workers Hospitalisation and Surgical (FWCS or SKHPPA) is specially designed in view of increasing hospital and surgical costs and to reduce the financial burdens of employers of foreign workers in Malaysia in the event of hospital admission of their foreign workers due to an accident or illness.

FWCS/SKHPPA allows foreign workers a cashless admission into government hospitals under a Third (3rd) Class Room and Board basis but exception is given to cases which require emergency treatment at private hospitals.

Permanent disablement: Up to RM23,000 (working hours) or RM23,000 (off working hours)

Temporary loss of income due to temporary disablement

Hospitalisation & medical expenses: Up to RM750

Repatriation due to death or permanent disablement: RM4,800

Foreign Workers Hospitalization and Surgical (FWHS or SKHPPA)

The Foreign Workers Hospitalisation and Surgical (FWCS or SKHPPA) is specially designed in view of increasing hospital and surgical costs and to reduce the financial burdens of employers of foreign workers in Malaysia in the event of hospital admission of their foreign workers due to an accident or illness.

FWCS/SKHPPA allows foreign workers a cashless admission into government hospitals under a Third (3rd) Class Room and Board basis but exception is given to cases which require emergency treatment at private hospitals.

This insurance provides contractors involved in hydro projects, motorways, railways and pipelines with annual cover or single risk project cover.

PRODUCT HIGHLIGHTS

We have a strong track record of leading the insurance of large and complicated project contracts

We are recognised technical expertise in the sector

We seek to develop long-term relationships with clients

COVER

Our standard cover includes:

Consequences of design

Extended maintenance

Natural catastrophes

Property damage only

Primary third party liability

Cover can be extended to include:

Delay in start up

Full design

Erection all Risks

ACPG Principal Insurer Erection All Risks (EAR) insurance includes the erection and installation of electrical or mechanical plant and machinery. It’s ideal for mechanical and electrical contractors looking for annual contract cover or developers, manufacturers, power and energy companies involved in large and complex installations.

Our target areas include construction of power plants, oil and gas facilities and other heavy industries such as steel, aluminium and cement, as well as traditional light engineering projects such as bottling plants and pharmaceuticals.

PRODUCT HIGHLIGHTS

Experience in writing many types of risks from standard installation contracts to large scale power and energy plants

A strong track record of leading the insurance of large and complex project contracts

The capacity to cover contracts in many overseas territories

Highly experienced risk engineers who can assist in risk management and risk reduction, as well as ensure that standards are maintained during the erection and installation works to help reduce losses

COVER

Our standard EAR cover is for the erection and / or installation of electrical or mechanical plant and machinery globally.

It can also cover losses during the testing and commissioning prior to hand-over and damage during the contractual maintenance period.

Cover can be provided for movement and re-erection of machinery along with testing, commissioning and maintenance of installed machinery.

An ‘all-risks’ cover that includes breakdown and explosion during testing and commissioning.

Available on contracts overseas subject to some territorial and environmental peril limitations.

The standard insurance offers cover for defective design under the LEG 2/96 wording and damage to installed equipment during maintenance visits. This can be extended to give wider defective design cover and either extended or ‘full’ or guarantee maintenance.

Foreign Workers Insurance

Employees are a company’s greatest asset therefore it is essential for an employer to get their employees protected.

Being one of the approved panel insurance companies to provide foreign workers insurance, ACE Jerneh has three products designed to provide financial relief for the employer in the event of death, hospitalization or repatriation of their foreign workers.

Foreign Workers Compensation Scheme (FWCS)

As provided under Section 26(2) of the Workmen’s Compensation Act 1952, it is mandatory for every employer to insure all their foreign workers employed by the company under the Foreign Workers Compensation Scheme (FWCS).

ACPG Principal Insurer is one of the panel insurance companies appointed and approved by the Ministry of Human Resources to underwrite FWCS. The scheme provides foreign workers with personal accident and repatriation benefits during and outside of working hours.

COVERAGE

Foreign workers who are under the employment of the insured company will enjoy coverage that include

Death and disability due to an accident

Disease arising out of and in the course of employment

Medical expenses

Repatriation expenses

Foreign Workers Hospitalization & Surgical Scheme (FWHS)

Effective 1 January 2011, all foreign workers in Malaysia are required to purchase a RM120 premium per year Foreign Workers Hospitalization & Surgical Scheme (FWCS) that provides RM20,000 annual coverage.

ACPG Principal Insurer is one of the panel insurance companies appointed and approved by the Ministry of Health (MOH) to underwrite the FWHS.

BENEFITS

Under the insurance policy, foreign workers will enjoy benefits that include

Daily hospital and room board of up to a maximum of 30 days

Intensive care unit (ICU) of up to a maximum of 15 days

Operating theatre fees

Surgical fees

Anaesthetist fees

In-hospital physician visits of up to a maximum of 30 days

In-hospital specialist consultation visits of up to a maximum of 30 days

Ambulance fees

Medical report fees

Foreign Workers Insurance Guarantee (FWIG)

Foreign Workers Insurance Guarantee (FWIG) is a guarantee required by the Immigration Department from the employer as a security deposit for the employment of foreign workers (excluding Domestic Maid) under Regulation 21 of the Immigration Regulations.

This insurance serves as a guarantee to the Immigration Department to cover the repatriation expenses in the event the foreign worker is required by the authorities to be sent back to his/her country of origin during his/her course of stay in Malaysia. The circumstances could arise from:-

Breach of Immigration Act

Foreign worker is caught involving in illegal and illicit activities such as drug, immoral work, etc.

Employer goes into liquidation and is unable to provide the return passage for the foreign worker

Please refer to the policy contract for the full details of benefits, terms and exclusions that are applicable.

The information provided here is a brief summary for quick and easy reference.

The exact terms and conditions that apply are stated in the policy contract.

The Malaysia Competition Commission (MyCC) has fined MY E.G. Services Bhd (MyEG) RM2.272mil for abusing its dominant position in how it manages online foreign workers permit (PLKS) renewals.In a statement on Friday, MyCC said by virtue of their shareholdings and directorships, MyEG and MY E.G. Commerce Sdn Bhd (MyEG Commerce) were a single economic unit as defined under the Competition Act 2010. (MyEG Commerce is 100% owned by MyEG.)MyCC said it found that MyEG, together with MyEG Commerce, had infringed the Act by “abusing its dominant position in harming competition in the downstream market in which MyEG Commerce is participating as an insurance agent for online PLKS renewal applications.

”The competition authority said different conditions were imposed to equivalent transactions with its competitors to the extent that it had harmed competition in the downstream market for the sale of mandatory insurances.The RM2.272mil financial penalty imposed on the e-government services provider comprises a fine of RM307,200 for the infringement periods of Jan 5, 2015, to Jan 22, 2015, and May 2, 2015, to Oct 6, 2015, as well as a daily penalty of RM7,500 from Oct 7, 2015, to the date of MyCC’s decision (June 24).

The Commission also imposes several remedial actions on MyEG, for which non-compliance may lead to a higher daily penalty for the subsequent period of non-compliance.These remedial actions include asking MyEG to cease and desist immediately from imposing different conditions to equivalent transactions in the processing of mandatory insurances for online PLKS renewal applications.MyEG must also provide an efficient gateway for all its competitors in the market of sale of the mandatory insurances and allows the other competitors to compete at the same level within 60 days.

The company must also provide an undertaking in the form and manner acceptable to the Commission, to be fully compliant with the rules and regulations of General Insurance Association of Malaysia within 60 days.In an announcement to Bursa Malaysia on the same day, MyEG said its board of directors would review MyCC’s decision with the company’s legal counsel and it intended to file in an appeal to MyCC.MyEG shares shed 1 sen to close at RM1.94 on Friday, with 7.046 million shares traded.